Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

The following tables disaggregate revenue sources for the three months ended March 31, 2018:



	For the Three Months Ended March 31, 2018
	(in millions)
Southern Company
Operating revenues
Retail electric revenues^(a)
Residential	$	1,539
Commercial	1,243
Industrial	756
Other	30
Natural gas distribution revenues	1,224
Alternative revenue programs^(b)	(24		)
Total retail electric and gas distribution revenues	$	4,768
Wholesale energy revenues^(c)(d)	468
Wholesale capacity revenues^(d)	151
Other natural gas revenues^(e)	407
Other revenues^(f)	578
Total operating revenues	$	6,372


(a)	Retail electric revenues include $18 million of leases and a net increase of $117 million from certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Southern Company under "Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms.


(b)	See Note 1 to the financial statements of Southern Company under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.


(c)	Wholesale energy revenues include $93 million of revenues accounted for as derivatives, primarily related to revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market. See Note (I) for additional information on energy-related derivative contracts.


(d)	Wholesale energy and wholesale capacity revenues include $69 million and $30 million, respectively, of PPA contracts accounted for as leases.

(e)

Other natural gas revenues related to Southern Company Gas' energy and risk management activities are presented net of the related costs of those activities and include gross third-party revenues of $1.9 billion, of which $1.1 billion relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues.


(f)	Other revenues include $90 million of revenues not accounted for under ASC 606.



	For the Three Months Ended March 31, 2018
	Alabama Power		Georgia Power		Gulf Power		Mississippi Power
	(in millions)
Operating revenues
Retail revenues^(a)(b)
Residential	$	570	$	744	$	165	$	60
Commercial	371		717		92		62
Industrial	338		316		32		70
Other	6		21		1		2
Total retail electric revenues	$	1,285	$	1,798	$	290	$	194
Wholesale energy revenues^(c)	101		40		35		93
Wholesale capacity revenues	24		14		6		4
Other revenues^(b)(d)	63		109		17		11
Total operating revenues	$	1,473	$	1,961	$	348	$	302

(a)

Retail revenues at Alabama Power, Georgia Power, Gulf Power, and Mississippi Power include a net increase or (net reduction) of $47 million, $10 million, $(16) million, and $76 million, respectively, related to certain cost recovery mechanisms that are not accounted for as revenue under ASC 606. See Note 3 to the financial statements of Alabama Power, Georgia Power, Gulf Power, and Mississippi Power under "Retail Regulatory Matters" in Item 8 of the Form 10-K for additional information on cost recovery mechanisms.


(b)	Retail revenues and other revenues at Georgia Power include $18 million and $33 million, respectively, of revenues accounted for as leases.


(c)	Wholesale energy revenues at Alabama Power, Georgia Power, Gulf Power, and Mississippi Power include $5 million, $7 million, $1 million, and $1 million, respectively, accounted for as derivatives primarily related to physical energy sales in the forward and spot markets. See Note (I) for additional information on energy-related derivative contracts.


(d)	Other revenues at Alabama Power, Georgia Power, and Gulf Power include $25 million, $26 million, and $2 million, respectively, of revenues not accounted for under ASC 606.



	For the Three Months Ended March 31, 2018
	(in millions)
Southern Power
PPA capacity revenues^(a)	$	138
PPA energy revenues^(a)	254
Non-PPA revenues^(b)	115
Other revenues	2
Total operating revenues	$	509


(a)	PPA capacity revenues and PPA energy revenues include $47 million and $76 million, respectively, related to PPAs accounted for as leases. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K for additional information on capacity revenues accounted for as leases.


(b)	Non-PPA revenues include $79 million of revenues from short-term sales related to physical energy sales from uncovered capacity in the wholesale electricity market. See Note 1 to the financial statements of Southern Power under "Revenues" in Item 8 of the Form 10-K and Note (I) for additional information on energy-related derivative contracts.



	For the Three Months Ended March 31, 2018
	(in millions)
Southern Company Gas
Operating revenues
Natural gas distribution revenues
Residential	$	660
Commercial	192
Transportation	277
Industrial	17
Other	78
Alternative revenue programs^(a)	(24		)
Total natural gas distribution revenues	$	1,200
Gas marketing services^(b)	271
Wholesale gas services^(c)	146
Gas midstream operations	22
Total operating revenues	$	1,639


(a)	See Note 1 to the financial statements of Southern Company Gas under "Revenues" in Item 8 of the Form 10-K for additional information on alternative revenue programs at the natural gas distribution utilities. Alternative revenue program revenues are presented net of any previously recognized program amounts billed to customers during the same accounting period.


(b)	Gas marketing services includes $3 million and $1 million of revenues accounted for as derivatives and leases, respectively. See Note (I) for additional information on energy-related derivative contracts.

(c)

Wholesale gas services revenues are presented net of the related costs associated with its energy trading and risk management activities. Operating revenues, as presented, include gross third-party revenues of $1.9 billion, of which $1.1 billion relates to contracts that are accounted for as derivatives. See Note (L) under "Southern Company Gas" for additional information on the components of wholesale gas services operating revenues and Note (I) for additional information on energy-related derivative contracts.

Contract with Customer, Asset and Liability

The following table reflects the closing balances of receivables, contract assets, and contract liabilities related to revenues from contracts with customers as of March 31, 2018:



	Receivables		Contract Assets		Contract Liabilities
	(in millions)
Southern Company	$	2,607	$	60	$	52
Alabama Power	507		—		11
Georgia Power	600		29		5
Gulf Power	129		—		1
Mississippi Power	64		—		—
Southern Power	78		—		4
Southern Company Gas	948		—		15

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

Revenues from contracts with customers related to these performance obligations remaining at March 31, 2018 are expected to be recognized as follows:



	2018		2019		2020		2021		2022		2023 and Thereafter
	(in millions)
Southern Company	$	458	$	403	$	369	$	358	$	345	$	2,161
Alabama Power	16		21		22		26		22		161
Georgia Power	31		41		38		40		30		113
Gulf Power	16		22		—		—		—		—
Mississippi Power	2		3		3		1		—		—
Southern Power	384		350		330		313		312		2,010